By: Randy

Randy — Sun, 05 Jul 2009 09:48:45 +0000

Its the total opposite of what you think.
Adsense and Adwords is the primary way that Google makes their money. Before adsense came out Google was struggling to turn a profit but once they figured out a way to help advertisers they hit it big time.
Here is how Adsense works:
Webmaster signs up for Adsense, google gives them a snippet of code to place on their site. Google then crawls each page that the code is on and learns what the page is about and places adds on the site that is relevant to the content of that page. This is known as contextual ads.
Money is made this way. An advertiser signs up with Google to have their ads placed in Adsence blocks based on contextual ads. When a visitor to a website clicks on the ad, the advertiser gets the customer to their site and hopefully they buy something, the person who owns the website with the adsense on it gets a very small percentage of what the advertiser paid for the ad and Google gets a much larger percent. The actual percent of what the advertiser paid is always kept a secret from the webmaster.
In easy terms, say an advertiser pays $10 for one ad, the webmaster who hosted the ad may get anywhere from $0.01 per click up to $3 or $5.00 while Google gets the rest.
The percentage is based on factors such as history of click through rates, visitors to the site and CPM.

Comments on: Do You Think Google Is Using Adsense To Keep Track Of All These Money Making Website Out There?

By: Randy